Delving into First Bancorp Inc's Dividend History, Yield, Growth, and Future Prospects
First Bancorp Inc (FNLC, Financial) recently announced a dividend of $0.35 per share, payable on 2023-10-20, with the ex-dividend date set for 2023-10-06. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into First Bancorp Inc's dividend performance and assess its sustainability.
What Does First Bancorp Inc Do?
First Bancorp Inc is a Damariscotta-based bank holding company providing a range of retail and commercial banking services including deposit accounts and consumer, commercial and mortgage loans. The company provides investment management and private banking services through an operating division of the bank. Its revenues are generally derived from dividends paid to the company by the bank.
A Glimpse at First Bancorp Inc's Dividend History
First Bancorp Inc has maintained a consistent dividend payment record since 1994. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down First Bancorp Inc's Dividend Yield and Growth
As of today, First Bancorp Inc currently has a 12-month trailing dividend yield of 5.78% and a 12-month forward dividend yield of 5.90%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, First Bancorp Inc's annual dividend growth rate was 3.90%. Extended to a five-year horizon, this rate increased to 9.10% per year. And over the past decade, First Bancorp Inc's annual dividends per share growth rate stands at 6.30%.
Based on First Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of First Bancorp Inc stock as of today is approximately 8.93%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, First Bancorp Inc's dividend payout ratio is 0.55.
First Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks First Bancorp Inc's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. First Bancorp Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and First Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. First Bancorp Inc's revenue has increased by approximately 11.30% per year on average, a rate that outperforms than approximately 73.05% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, First Bancorp Inc's earnings increased by approximately 14.70% per year on average, a rate that outperforms than approximately 66.36% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 14.20%, which outperforms than approximately 68.95% of global competitors.
Next Steps
Considering First Bancorp Inc's consistent dividend payments, impressive growth rate, sustainable payout ratio, and strong profitability and growth metrics, it appears to be a promising dividend stock. However, investors should continue to monitor these metrics and the company's overall performance to ensure its dividends remain sustainable in the long run.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
